SpiceJet Ltd Stock Falls to 52-Week Low of Rs.22.62 Amid Continued Financial Pressures

Stock Price Movement and Market Context

On 23 January 2026, SpiceJet Ltd’s stock closed at Rs.22.62, down 3.89% on the day, aligning closely with the airline sector’s decline of 3.91%. This new 52-week low contrasts sharply with the stock’s 52-week high of Rs.56.80, underscoring a steep depreciation of over 60% from its peak within the last year. The Sensex, meanwhile, experienced a negative session, falling 0.94% to 81,537.70 points, with the index trading below its 50-day moving average but maintaining a positive 50DMA-200DMA alignment.

SpiceJet’s share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning reflects the stock’s weak short- and long-term price trends relative to both its sector and the broader market.

Financial Performance and Fundamental Assessment

SpiceJet’s financial indicators reveal ongoing difficulties. The company reported negative results for the last two consecutive quarters, with Profit Before Tax excluding other income (PBT LESS OI) for the latest quarter at a loss of Rs.664.38 crore, representing a sharp 79.1% decline compared to the previous four-quarter average. Net sales for the latest six months stood at Rs.1,912.62 crore, down 27.09% year-on-year, while the net loss after tax (PAT) for the same period was Rs.855.14 crore, also deteriorating by 27.09%.

Over the past five years, SpiceJet’s net sales have contracted at an annual rate of 10.67%, with operating profit remaining flat at 0%, indicating stagnation in core business growth. The company’s balance sheet shows a negative book value, reflecting weak long-term fundamental strength. Despite being classified as a high-debt company, the average debt-to-equity ratio is reported at zero, which may indicate complex capital structure or accounting nuances.

Valuation and Risk Profile

The stock’s Mojo Score stands at a low 1.0, with a Mojo Grade of Strong Sell as of 23 December 2024, downgraded from Sell. This rating reflects the company’s deteriorated financial health and valuation concerns. Over the last year, SpiceJet’s stock has generated a negative return of 52.71%, significantly underperforming the Sensex’s positive 6.56% return over the same period. Additionally, the company’s profits have declined by 4.6% in the past year, further emphasising the challenging earnings environment.

SpiceJet’s performance has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting persistent underperformance relative to a broad market benchmark.

Sector and Market Dynamics

The airline sector has faced broad pressures, with the sector index declining by 3.91% on the day SpiceJet hit its 52-week low. This sector-wide weakness is compounded by macroeconomic factors affecting travel demand and operational costs. Despite these headwinds, SpiceJet’s decline has been more pronounced than many of its peers, reflecting company-specific financial and valuation challenges.

Sensex’s negative session and its trading below the 50-day moving average add to the cautious market environment, although the 50DMA remains above the 200DMA, suggesting some underlying market resilience. Within this context, SpiceJet’s share price trajectory remains subdued.

Long-Term Performance Trends

SpiceJet’s long-term performance metrics indicate a challenging growth trajectory. The company’s net sales have declined at an annualised rate of 10.67% over five years, with operating profit stagnating. The negative book value and weak fundamental strength further underscore the company’s financial difficulties. The stock’s valuation remains risky compared to its historical averages, with negative EBITDA contributing to the cautious outlook.

These factors collectively explain the stock’s sustained downtrend and its recent breach of the 52-week low, despite broader market fluctuations and sector movements.

Summary of Key Metrics

To summarise, SpiceJet Ltd’s stock has declined by 52.71% over the past year, closing at Rs.22.62 today, its lowest level in 52 weeks. The company’s financial results show a significant contraction in sales and profits, with negative PBT and PAT figures for recent periods. The Mojo Grade of Strong Sell and a low Mojo Score of 1.0 reflect the company’s current risk profile and valuation concerns. The stock’s technical indicators remain weak, trading below all major moving averages, while the airline sector and broader market indices have also experienced downward pressure.

These factors collectively illustrate the challenges faced by SpiceJet Ltd in maintaining its market valuation and financial stability over the recent period.

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